Crypto News: The global banking crisis triggered by the collapse of Crypto friendly Silicon Valley Bank (SVB) has left industry biggies in legal trouble. KPMG LLP as SVB’s auditor with underwriters involving Goldman Sachs Group Inc, Morgan Stanley & Co. and Bank of America Corp has been reportedly sued for making misleading statements resulting in the SVB crash.
Silicon Valley Bank Collapse Enters Court
According to a complaint filed in the San Francisco Federal court has targeted the Silicon Valley Bank’s bank auditors and underwriters. It mentioned SVB CEO Greg Becker and other bank executives as defendants.
It mentioned that the defendants misrepresented SVB’s balance sheet strength, liquidity and position established in the market. While the executives, auditor, and underwriters allegedly concealed the magnitude of the risk the bank was facing. Read More Crypto News Here…
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Bloomberg reported that KPMG, Goldman Sachs, Bank of America, Morgan Stanley and other defendants haven’t commented on the matter till now. However, as per lawsuit claims underwriters issued misleading registration comments on the bank’s stock offering which lead to its collapse. It mentioned that those statements were untrue facts
Coingape reported that SVB Financial Group Filed For Chapter 11 Bankruptcy after failing to follow bets set on bonds due to a spike in interest rates. It highlighted that SVB Securities and SVB Capital’s funds and general partner entities are not of these filings.
The lawsuit states that KPMG’s alleged liability is based in part on the certainty that it signed off on the collapsed Silicon Valley Bank’s 2022 annual report just a week before the March 8 market close.
